EAST AMWELL — The township had nearly $435,000 on its balance sheets at year's end, failed to maintain the general ledger after the former chief financial officer retired and improperly adopted a bond ordinance without a two-thirds majority, the annual audit found.

It comes just a few weeks after a special review of the township's books revealed that poor records were kept and proper procedures were not followed by former CFO Kathy Monzo, who was hired in August 2011 after Jane Luhrs retired.

The finding about the general ledger came as no surprise to the Township Committee because it had been pointed out in the review, but Committeeman Tim Mathews questioned the other two findings.

Interfunds are funds transferred from one township account to another, new CFO Karen Baldino explained.

Steps should be taken to liquidate all interfunds prior to the end of the fiscal year, the report recommended.

"Most of the time, there will be some interfunds, but I don't think they will be totaling that amount," Baldino said. "Sometimes, interest will be earned on an account in December, but we don't know about it until January so it becomes an interfund because there's no time to move that money."

Luhrs, who returned on a temporary basis to help put the books back in order after Monzo resigned, took care of the outstanding interfunds, Baldino added.

As for the other finding, a two-thirds majority of the five-member committee was required to adopt a bond ordinance for the acquisition of development easements in two farms, but one member was absent and another voted no. The vote was 3-1.

The committee will hold a revote, Baldino said.

The committee will also have to adopt a corrective action plan at its next meeting, she added.

In other business, the township plans to appropriate $15,000 from its capital improvement fund to buy and install a new computer and software for the finance department, under an ordinance introduced Sept. 13.

Last month, Baldino recommended that the township switch to Edmunds, a finance software system that, she says, is easier and more efficient to use than First Byte. The $11,090 cost includes a new computer and the software and licensing for her and the assistant treasurer, she said, adding that the township received a discount.